{"id":2887,"date":"2019-02-13T12:26:50","date_gmt":"2019-02-13T17:26:50","guid":{"rendered":"http:\/\/news.maryland.gov\/mde\/?p=2887"},"modified":"2019-02-13T12:47:07","modified_gmt":"2019-02-13T17:47:07","slug":"dept-of-the-environment-finalizes-spending-plan-for-volkswagen-settlement-money","status":"publish","type":"post","link":"https:\/\/news.maryland.gov\/mde\/2019\/02\/13\/dept-of-the-environment-finalizes-spending-plan-for-volkswagen-settlement-money\/","title":{"rendered":"Department of the Environment Finalizes Spending Plan for Volkswagen Settlement Money"},"content":{"rendered":"
MEDIA CONTACTS:<\/span><\/h5>\n

Jay Apperson<\/strong><\/span><\/p>\n

(410) 537-3003<\/a>
\njay.apperson@maryland.gov<\/a><\/p>\n

 <\/p>\n

Department of the Environment Finalizes Spending Plan for Volkswagen Settlement Money<\/strong><\/span><\/p>\n

Maryland responds to public comment on initial proposal, increases local government funding and adds electric school bus pilot program to $75.7 million spending plan<\/em><\/p>\n

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BALTIMORE, MD (February 13, 2019<\/span><\/span>) \u2013\u00a0<\/strong>The Maryland Department of the Environment, in close coordination with the Maryland Energy Administration and the Maryland Department of Transportation, has developed a spending plan that will invest over\u00a0$75\u00a0million dollars in settlement money from the Volkswagen \u201cdefeat devices\u201d case in transportation strategies and projects to improve the quality of the air that Marylanders breathe.<\/p>\n

The plan puts a priority on the deployment of electric vehicle charging infrastructure and the replacement of old, dirty diesel engines with new, cleaner technologies. After a robust public participation process that included comments received on a draft plan released\u00a0in\u00a0August, Maryland \u00a0increased local government funding by more than\u00a0$3\u00a0million and added an electric school bus pilot program. The electric school bus pilot program will work in concert with the Maryland Department of the Environment\u2019s (MDE)\u00a0idle reduction program to reduce emissions around schools to benefit the state\u2019s youngest residents.<\/p>\n

While the plan focuses on ways that Maryland can reduce nitrogen oxide (NOx) emissions that are a significant cause of smog pollution, Maryland will also experience significant co-benefits for the environment. These include reductions in particle pollution from diesel engines, reductions in emissions of greenhouse gases that contribute to climate change and reductions in pollution from volatile organic compounds that also help cause unhealthy smog.<\/p>\n

\u201cMaryland is proud to be a national leader in protecting our environment and promoting clean transportation,\u201d said Governor Larry Hogan. \u201cThis comprehensive plan is further proof of our commitment to leveraging 21st century technology to advance clean cars and preserve our natural resources for generations to come.\u201d<\/p>\n

\u201cEvery dollar is an investment in a cleaner and greener future with a focus on transportation electrification and climate leadership,” said Maryland Environment Secretary Ben Grumbles. “The Plan is a living document that will continue to reflect the innovations and partnerships from our citizens, communities, and businesses.\u201d<\/p>\n

\u201cExpanding Maryland\u2019s EV and alternative fuel vehicles is critical in reaching our targeted emission reduction goals which will not only improve air quality, but stimulate the Maryland economy,\u201d said Dr. Mary Beth Tung, Ph.D., J.D., Director, Maryland Energy Administration (MEA). \u201cMEA\u2019s charging station rebates have already helped to offset the cost of more than 2,500 systems for residential and commercial users and provided tax rebates of over $3 million dollars since 2015.\u201d<\/p>\n

\u201cMDOT is taking action to reduce emissions in Maryland from reducing congestion and idling cars with the Traffic Relief Plan to investing in new electric buses at the Baltimore\/Washington International Thurgood Marshall Airport,\u201d said Transportation Secretary Pete K. Rahn.<\/p>\n

The plan outlines how Maryland will spend the\u00a0$75.7\u00a0million it received under a settlement between the U.S. Justice Department and Volkswagen. In separate actions, Maryland announced a\u00a0$33.5\u00a0million settlement of its complaint against Volkswagen for violations of state environmental laws and settlements totaling more than\u00a0$6\u00a0million with Fiat Chrysler Automobiles and Bosch to resolve allegations the companies engaged in and facilitated cheating diesel emissions tests.<\/p>\n

THE VOLKSWAGEN CASE<\/strong><\/p>\n

From 2009 through 2015, certain diesel-powered Volkswagen, Audi, and Porsche vehicles were equipped with illegal \u201cdefeat devices.\u201d These devices allow cars to meet emissions standards in a laboratory or a testing station, but during normal operation those vehicles emit nitrogen oxides at up to 40 times federal standards. About 16,000 of these illegal vehicles were sold in Maryland.<\/p>\n

In 2015, the U.S. Environmental Protection Agency and the California Air Resources Board (CARB) issued a Notice of Violation of the Clean Air Act to Volkswagen AG (VW), Audi AG and Volkswagen Group of America, Inc. In 2016, a federal court approved a settlement that requires Volkswagen to spend\u00a0$2.7\u00a0billion on emission reduction programs in the United States. Under that settlement, Maryland was awarded\u00a0$75.7\u00a0million.<\/p>\n

AIR QUALITY IMPLICATIONS<\/strong><\/p>\n

Nitrogen oxides, or NOx, contribute to the formation of ground-level ozone, or smog. Unhealthy levels of ozone can irritate the respiratory system and cause other negative health impacts. NOx air emissions are also a significant source of nutrient pollution to the Chesapeake Bay and its tributaries.<\/p>\n

Maryland estimates that the illegal vehicles from Volkswagen and affiliated companies emitted up to 1,730 tons of excess NOx \u2013 the equivalent of an additional 375,000 vehicles on Maryland roads each day. While Maryland has made dramatic progress in cleaning up air pollution, this funding will help further achieve our goals. Ozone levels statewide meet the 2008, 75-parts-per-billion federal ozone standard, and 13 of the state\u2019s 18 ozone monitors are measuring levels that meet the new, 2015 standard of 70\u00a0parts per billion. However, areas of Maryland do not meet the newer standard.<\/p>\n

MARYLAND\u2019S PLAN<\/strong><\/p>\n

The spending plan was developed by MDE, the Maryland Department of Transportation (MDOT), and the Maryland Energy Administration (MEA) in accordance with the list of eligible projects and matching fund requirements that are required under Appendix D-2 of the Settlement. In August 2018, Maryland released a draft spending plan based on input from stakeholders around the state, including members of the Maryland Climate Change Commission and the Electric Vehicle Infrastructure Council, as well as state environmental agencies and organizations from around the country.<\/p>\n

The spending plan identifies who can receive funding, including federal and local governments as well as private businesses and highly impacted communities (areas of the state that historically and currently experience high levels of ground level ozone). Approximately 70 percent of the funding is reserved for partnerships with these groups. The majority of the money is to go to projects, with little going to administrative costs, to ensure maximum air pollution reductions for Maryland.<\/p>\n

The plan identifies types of projects eligible for funding, including replacement of older, heavy duty diesel engines with new diesel engines that are up to 70 percent cleaner or engines that use alternative fuels. Electric buses and heavy duty equipment such as trucks, boats and locomotives are potential projects that are eligible for funding. The plan also provides flexibility for groups to work in partnership with the state on priority projects.<\/p>\n

Electric vehicle infrastructure plays a vital role in increasing electric vehicle adoption. The plan uses the maximum 15 percent that is allowed to be used to fund electric vehicle charging infrastructure throughout Maryland.<\/p>\n

Maryland requested public comments on the draft plan and held regional public meetings. Changes made to the draft plan in response to public comments include:<\/p>\n